The Internal Revenue Service (IRS) has processed over 29.6 million tax refunds this year, marking a 2.3% increase from the previous year. The average refund stands at $3,453, reflecting a 7.5% rise. For those fortunate enough to receive a refund, investing it wisely is a prudent choice. Three standout stocks recommended by Fool.com contributors are Black Hills, Targa Resources, and Enterprise Products Partners. Each of these companies offers unique opportunities for growth and attractive dividends.

Black Hills, a regulated utility, is positioning itself for significant expansion. The company's five-year capital investment plan is 10% larger than its previous one, setting the stage for substantial future growth. Additionally, data center demand is expected to contribute significantly to earnings, reaching 10% by 2028. Black Hills also boasts a robust dividend yield of 4.4%, well above market averages, and has achieved Dividend King status with 55 consecutive annual increases. This combination of growth prospects and solid returns makes Black Hills an appealing investment option.

Targa Resources, a midstream energy firm, has seen remarkable success since the start of last year. Its stock price has more than doubled, driven by record-breaking performance in Permian, NGL transportation, fractionation, and LPG exports. These achievements led to a 17% increase in adjusted EBITDA to $4.1 billion. Targa has also been generous with shareholders, repurchasing $755 million worth of stock and raising its dividend by 50%. Looking ahead, the company anticipates another record year in 2025, with a projected 15% rise in adjusted EBITDA. Several new expansion projects will further fuel this growth, ensuring continued strong returns for investors.

Enterprise Products Partners, known for its steady growth and substantial dividends, has outperformed the S&P 500 over the past year. The company plans to bring nearly $6 billion worth of capital projects into service soon, which should bolster cash flows and provide more funds for reinvestment or distribution. In 2024, Enterprise Products reported record net income growth of 7% and distributable cash flow (DCF) growth of 4%. With a dividend coverage ratio of 1.7 times and a generous yield of 6.4%, Enterprise Products offers both stability and potential for higher returns. Moreover, its fee-based, long-term contracts insulate earnings from oil and gas price volatility, making it a reliable investment choice.

Investing your tax refund in these three companies can offer a blend of growth and income. Black Hills, Targa Resources, and Enterprise Products Partners each present distinct advantages, whether through robust dividend yields, promising expansion plans, or consistent financial performance. By carefully considering these options, you can make informed decisions that align with your financial goals.