Pacholder HYF Declares Special Dividend

NEW YORK--(BUSINESS WIRE)-- The Pacholder High Yield Fund, Inc. (NYSE AMEX:PHF) declared a special dividend of $0.205 per common share payable on December 30, 2010 to shareholders of record on December 28, 2010. The ex-date for the dividend is December 23, 2010. The dividend is in addition to the $0.060 per common share monthly dividend for December which is also payable on December 30, 2010 to shareholders of record on December 28, 2010.

In addition, the Fund anticipates continuing to pay a regular monthly dividend in 2011, which is currently set at $0.060 per common share, subject to market conditions and the requirement that the Fund maintain an asset coverage of at least 200% of the Auction Rate Preferred Shares (“ARPS”) after payment of dividends.

The amount of monthly dividend may be more or less than the actual income earned by the Fund in a given month and the Board will continue to monitor the continuing appropriateness of the dividend level in light of market conditions and income earned by the Fund over time. In addition, during the last quarter of 2011, the Board will consider the amount of undistributed net income remaining, if any, and may declare a special dividend.