How should you invest if you've just received a quick windfall? Say $10,000 or even $100,000. The stock market is near all-time highs, so an aggressive investment stance will likely expose you to a lot of downside risk. A better option would be to lock in some above-average yields backed by reliable dividend payers. To that end, you'll want to look at Black Hills (NYSE: BKH), Realty Income (NYSE: O), and Medtronic (NYSE: MDT) today. Here's why.

1. Black Hills is small but mighty

As far as utilities go, Black Hills is a small fry with a market cap of around $4.2 billion. But its dividend yield of 4.2% is well above the utility sector's average of 2.9%, using Utilities Select Sector SPDR ETF as a proxy. In this regard, Black Hills looks quite affordable.

But there's one more dividend stat that's important to consider. That figure is 54, which is the number of years that Black Hills has increased its dividend. That makes it a highly elite Dividend King. It is one of the few utilities that has achieved this feat. So you get an above-average yield and an above-average dividend track record.

The business, meanwhile, is also on very solid ground. Black Hills serves 1.3 million customers in parts of Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota, and Wyoming. Population growth in the regions it serves is expanding nearly three times faster than population growth for the United States as a whole. Black Hills may not be an exciting dividend stock to own, but slow and steady can be very rewarding when the markets get volatile.

2. Realty Income's nickname says it all

Realty Income has trademarked the nickname "The Monthly Dividend Company." While that speaks to its monthly pay dividend, it is also a statement about its commitment to paying a reliable dividend. The streak of annual dividend increases is currently up to 29 years. Realty Income's yield is an attractive 5.1%, which is well above the 3.7% of the average real estate investment trust (REIT), using Vanguard Real Estate Index ETF as a proxy.

Meanwhile, Realty Income is one of the largest net lease REITs. (A net lease requires tenants to pay for most property-level operating costs.) It has an investment-grade rated balance sheet. And it has a diversified portfolio, with exposure to retail and industrial assets in both North America and Europe.

Given the REIT's large size, it owns over 15,400 properties, so it simply can't grow rapidly -- slow and steady growth is the likely outcome here. But if you like collecting a reliable dividend during bull and bear markets alike, Realty Income is a smart dividend stock to have in your portfolio.

3. Medtronic is closing in on Dividend King status

Medtronic is one of the largest medical device makers in the world. Its products are complex and filled with high-end technology so it is a tough competitor. And it is large and financially strong enough to act as an industry consolidator, often doing bolt-on deals that expand its technological prowess. With an aging population, Medtronic is likely well placed to keep growing its business over time.

What the company definitely has grown over time is its dividend, which has been increased annually for 48 consecutive years. That's just two years shy of the Dividend King mark. And the dividend yield is a cool 3.1% compared to the healthcare average of 1.4%, using Health Care Select Sector SPDR ETF as a proxy for the industry.

To be fair, Medtronic's growth stumbled for a little bit and, thus, investors have been downbeat on the shares. But it has reworked its portfolio with an increasing focus on growing product categories. That's starting to show up in the company's sales results. To put a number on that, organic revenue growth in fiscal 2024, which ended in June, was 2.1%. In fiscal 2025 the company expects to roughly double that rate with top-line organic growth between 4% and 4.5%. Given that medical care is a necessity and not an option for most people, Medtronic's improving business fundamentals make it a great dividend choice even as Wall Street hovers near record levels.

Play it safe if you are putting money to work today

With the market at such lofty levels, now is not the time to reach for yield. It is time to balance risk and reward, selecting reliable dividend stocks that have a proven record of paying shareholders well in both good markets and bad ones. That's exactly what Black Hills, Realty Income, and Medtronic have done for decades. Add in the above peer yields that each offers and you can see why they'd each be a smart place to put $10,000, or more, to work today.

Should you invest $1,000 in Realty Income right now?

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Reuben Gregg Brewer has positions in Black Hills, Medtronic, and Realty Income. The Motley Fool has positions in and recommends Realty Income and Vanguard Real Estate ETF. The Motley Fool recommends Medtronic and recommends the following options: long January 2026 $75 calls on Medtronic and short January 2026 $85 calls on Medtronic. The Motley Fool has a disclosure policy.

The Smartest Dividend Stocks to Buy With $10,000 Right Now was originally published by The Motley Fool