Large, well-run companies often get cheaper when Wall Street hits the skids, despite their proven staying power.
A blue chip stock can be a kind of North Star for investors, a beckoning beacon among the thousands of other shining stars – and potential black holes -- that populate the constellation of publicly traded stocks. Blue chip stocks are shares of companies that have long records of stability and reliability, good reputations, and viable business models that are managed by experienced hands that know how to respond to change while staying true to what works. Realty Income may not have the name recognition of other blue-chippers, but it certainly has the bona fides.
Investors are worried about Realty Income's growth, but it thinks that rising rates will lead to massive opportunities.