I've followed oil giant (NYSE: CVX) for several years. Over that time, I've grown to respect the company's management team and strategy, which centers around paying a rising dividend. Chevron is one of the best in that department, having increased its payout for 36 straight years, the second-longest streak in the oil patch, trailing only ExxonMobil.

Chevron is the type of dividend stock I love to own. Here's why I finally decided to add it to my portfolio.

Chevron has built its dividend on a very strong foundation. The company's integrated and low-cost business model generates meaningful cash flow in a variety of market conditions. As the left side of the following slide shows, it can produce more than enough cash to cover its dividend and capital program over the next several years amid lower oil prices:

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Source Fool.com