This Industry Leader Will Have to Spend Big if It Wants to Keep Growing

When it comes to the business world, being bigger is very often better. A clear example of this today is real estate investment trust (REIT) Realty Income (NYSE: O), which stands head and shoulders above its closest peers. However, it is important for investors to step back and look at the full picture. Being big is good, but it also has a downside.

Realty Income performed very well for investors over the years. That's highlighted by 28 consecutive years of annual dividend increases. A record like that is created via a purposeful and diligent approach to managing a business. That's backed up by the fact that this REIT's balance sheet is investment-grade rated, giving it the financial strength to survive through bad times. Earning an investment-grade rating is not an accident, it is a conscious managerial decision.