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Here the roof runoff is directly affecting the corner of the chimney due to improper water diversion. Instead of being diverted into the eaves system it is soaking the wall (below):

The trapped moisture never escapes and has breached underneath the building envelope. This is causing some serious issues underneath and requires a closer investigaton (below):

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A roof termination is any area where the roof intersects or stops at a vertical wall. These areas can be very problematic with regards to water intrusion from roof runoff.

Roof terminations into chimneys for example often lead to leaks when the roof diverter flashing is improperly installed. Diverter flashing must be extended away from a stucco chimney so that the runoff water can be 'diverted' into the eavestrough. In some cases a kickout flashing is required to accomplish this, depending on the direction of the slope of the roof.

Often times the eavestrough  has been installed before the stucco in many older homes. This provides very little protection if the diverter flashing is incorrect. Constant water exposure will deteriorate the often only single layer of tar paper over time, eventually leading to leaks.

It is important to consult a stucco professional if you notice a lot of staining around your stucco chimney. This is a tell tale sign of a improper roof termination.

Restoration and recovery

A full demolition is needed and as shown the entire chimney corner has been compromised (above):