The Wall Street Journal: Dow’s rising stock imperils Warren Buffett’s $8-per-second cash cow

Warren Buffett’s Berkshire Hathaway Inc. continues to reap rich dividends from a canny loan extended to Dow Chemical Co. seven years ago. But a recent rally in Dow’s stock is putting that income stream at risk.

Shares of Dow have spent much of the past month hovering above $53 — perilously close to a level that would cause Berkshire to lose a $255 million-a-year dividend.

Since 2009, when Berkshire BRK.A, -0.30% lent Dow Chemical DOW, -0.32% $3 billion to help finance its purchase of Rohm & Haas, Dow has been on the hook for paying an 8.5% annual dividend on three million shares of preferred stock.

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