JennisonDryden
Dryden High Yield Fund , Inc.
Summary Prospectus Oct 30, 2009
Summary Prospectus | Prospectus | Annual Report | Semi Annual Report | Statement of Additional Information
Dryden High Yield Fund, Inc.

Ticker Symbols
Class A: PBHAX Class M: DHYMX
Class B: PBHYX Class R: JDYRX
Class C: PRHCX Class Z: PHYZX

 

Summary Prospectus October 30, 2009

Before you invest, you may want to review the Fund's Prospectus, which contains more information about the Fund and its risks. You can find the Fund's Prospectus, Statement of Additional Information (SAI), Annual Report and other information about the Fund online at www.jennisondyden.com. You can also get this information at no cost by calling 1-800-225-1852 or by sending an e-mail to: drydenhighyieldfund@reply.jennisondrydenemail.com

The Fund's Prospectus and SAI, both dated October 30, 2009, and the Fund's most recent shareholder report, dated August 31, 2009, are all incorporated by reference into this Summary Prospectus.

MF110A

INVESTMENT OBJECTIVE

The investment objective of the Fund is to maximize current income. As a secondary investment objective, the Fund will seek capital appreciation, but only when consistent with the Fund's primary investment objective of current income.

FUND FEES AND EXPENSES

The tables below describe the sales charges, fees and expenses that you may pay if you buy and hold shares of the Fund.

You may qualify for sales charge discounts if you and an eligible group of investors purchase, or agree to purchase in the future, more than $25,000 in shares of the Fund or other funds in the JennisonDryden family of funds. More information about these discounts is available from your financial professional and is explained in Reducing or Waiving Class A's Initial Sales Charge on page 32 of the Fund's Prospectus and in the Fund's Statement of Additional Information (SAI), in Rights of Accumulation on page 45.

Shareholder Fees (paid directly from your investment)
Class A Class B Class C Class L Class M Class R Class X Class Z
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 4.50% None None 4.25% None None None None
Maximum deferred sales charge (load) (as a percentage of offering price) 1% 5% 1% 1% 6% None 6% None
Maximum sales charge (load) imposed on reinvested dividends and other distributions None None None None None None None None
Redemption fees None None None None None None None None
Exchange fee None None None None None None None None
Maximum account fee (accounts under $2,500) $15 $15 $15 $15 $15 None $15 None

 

Annual Fund Operating Expenses % (expenses that you pay each year as a percentage of the value of your investment)

Class A Class B Class C Class L Class M Class R Class X Class Z
Management fees   .48 .48 .48 .48 .48 .48 .48 .48
+ Distribution and service (12b-1) fees   .30 .75 1.00 .50 1.00 .75 1.00 None
+ Other expenses   .18 .18 .18 .18 .18 .18 .18 .18
= Total annual Fund operating expenses   .96 1.41 1.66 1.16 1.66 1.41 1.66 .66
- Fee waiver or expense reimbursement   (.05) None (.25) None None (.25) None None
= Net annual Fund operating expenses   .91 1.41 1.41 1.16 1.66 1.16 1.66 .66

Examples. The following hypothetical example is intended to help you compare the cost of investing in the Fund with the cost of investing in other funds. It assumes that you invest $10,000 in the Fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It assumes a 5% return on your investment each year, that the Fund's operating expenses remain the same and that all dividends and distributions are reinvested. Your actual costs may be higher or lower.

 

If Shares Are Redeemed

If Shares Are Not Redeemed

Share Class 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years
Class A $539 $737 $952 $1,571 $539 $737 $952 $1,571
Class B 644 746 871 1,511 144 446 771 1,511
Class C 244 499 879 1,944 144 499 879 1,944
Class L 538 778 1,036 1,774 538 778 1,036 1,774
Class M 769 923 1,102 1,779 169 523 902 1,779
Class R 118 422 747 1,669 118 422 747 1,669
Class X 769 923 1,202 1,965 169 523 902 1,965
Class Z 67 211 368 822 67 211 368 822

° The distributor of the Fund has contractually agreed through December 31, 2010 to reduce its distribution and service (12b-1) fees for Class A shares, Class C shares and Class R shares to .25 of 1% of the average daily net assets of Class A shares, to .75 of 1% of the average daily net assets of Class C shares and .50 of 1% of the average daily net assets of Class R shares. These waivers may not be terminated by the distributor prior to December 31, 2010, and may be renewed, modified or discontinued thereafter. The decision on whether to renew, modify or discontinue the waiver is subject to review by the distributor and the Fund's Board of Directors.

Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance. During the Fund's most recent fiscal year, the Fund's portfolio turnover rate was 82% of the average value of its portfolio.

INVESTMENTS, RISKS AND PERFORMANCE

Principal Investment Strategies. To achieve the Fund's income objective, we invest, under normal circumstances, at least 80% of the Fund's investable assets in a diversified portfolio of high yield fixed-income instruments rated Ba or lower by Moody's Investors Service (Moody's) or BB or lower by Standard & Poor's Ratings Group (Standard & Poor's), and instruments either rated by another major rating service or considered by us to be of comparable quality, that is, junk bonds. The term "investable assets" in this prospectus refers to the Fund's net assets plus any borrowings for investment purposes. The Fund's investable assets will be less than its total assets to the extent that it has borrowed money for non-investment purposes, such as to meet anticipated redemptions. The Fund will provide 60 days' prior written notice to shareholders of a change in the 80% policy stated above. While the Fund makes every effort to achieve its objectives, it can't guarantee success.

In determining which securities to buy and sell, the investment subadviser will consider, among other things, the financial history and condition, earnings trends, analysts' recommendations, and the prospects and the management of an issuer. The investment subadviser generally will employ fundamental analysis in making such determinations. Fundamental analysis involves review of financial statements and other data to attempt to predict an issuer's prospects and to try to decide whether the price of the issuer's security is under-valued or overvalued.

Principal Risks of Investing in the Fund. All investments have risks to some degree. Please remember that an investment in the Fund is not guaranteed to achieve its investment objective; is not a deposit with a bank; is not insured, endorsed or guaranteed by the Federal Deposit Insurance Corporation or any other government agency; and is subject to investment risks, including possible loss of your original investment.

Recent Market Events. Domestic and international markets have experienced a period of acute stress starting in the financial sector and then moving to other sectors of the world economy. This stress has resulted in extreme volatility in equity markets and stock prices. In some cases, the prices of certain stocks have declined sharply even though the financial condition or prospects of that company remain sound. These market conditions add significantly to the risk of short-term volatility of the Fund. Debt markets are also experiencing a period of high volatility which has negatively impacted market liquidity and prices. The concerns, which initially focused on subprime mortgage backed securities, have since expanded to include derivatives, securitized assets and other debt securities, including those rated investment grade, the U.S. and international credit and interbank money markets generally, and a wide range of financial institutions and markets, asset classes, and sectors. As a result, debt instruments are experiencing liquidity issues, increased price volatility, credit downgrades, and increased likelihood of default. These market conditions may adversely effect the Fund's investments and hamper its ability to sell debt securities or to purchase suitable debt instruments.

Risk of increase in expenses. Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table for a variety of reasons. For example, expense ratios may be higher than those shown if a voluntary fee waiver is changed or terminated or if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile.

Fixed-Income Obligations Risk. As with credit risk, market risk and interest rate risk, the Fund's holdings, share price, yield and total return may fluctuate in response to bond market movements. Certain types of fixed income obligations also may be subject to call and redemption risk where the issuer may call a bond held by the Fund for redemption before it matures and the Fund may lose income. See also "Recent Market Events," above.

Junk Bonds. High-yield, high-risk bonds have speculative characteristics, including particularly high credit risk. Junk bonds tend to be less liquid than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high profile default or a change in the market's psychology.

Credit Risk. This is the risk that the issuer, the guarantor or the insurer of a fixed-income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments or to otherwise honor its obligations. Additionally, the securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more likely its value will decline.

Market Risk. Your investment in Fund shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other investments, may move up or down, sometimes rapidly and unpredictably. Securities markets are volatile. Your Fund shares at any point in time may be worth less than what you invested, even after taking into account the reinvestment of Fund dividends and distributions. Regardless of how well an individual company performs, if financial markets go down, you could lose money.

Interest Rate Risk. This is the risk that the securities in which the Fund invests could lose value because of interest rate changes. For example, bonds tend to decrease in value if interest rates rise. Debt obligations with longer maturities generally are more sensitive to interest rate changes. In addition, short-term and long-term interest rates do not necessarily move in the same direction or by the same amount. An instrument's reaction to interest rate changes depends on the timing of its interest and principal payments and the current interest rate for each of those time periods. Instruments with floating interest rates can be less sensitive to interest rate changes. Certain types of debt obligations are also subject to prepayment and extension risk. When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as "prepayment risk." When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund's holdings may fall sharply. This is referred to as "extension risk."

Derivatives Risk. The value of a derivative generally depends upon, or is derived from, an underlying asset, reference rate or index. The use of derivatives involves costs and can be more volatile than other investment strategies, resulting in greater volatility for the Fund, particularly during periods of market decline. Investments in derivatives may not have the intended effects and may result in losses for the Fund that may not have otherwise occured or missed opportunities for the Fund. Certain types of derivatives involve leverage, which could magnify losses. Derivatives involve the risk of mispricing or improper valuation and the risk that changes in the value of the derivative may not correlate perfectly with the underlying asset, reference rate or index. Investing in derivatives could cause the Fund to lose more than the principal amount invested. Derivatives are also subject to liquidity risk, interest rate risk, credit risk, market risk and management risk.

For more information on the risks of investing in this Fund, please see Investment Risks in the Prospectus and Investment Risks and Considerations in the SAI.

The Fund's Past Performance. A number of factors - including risk - can affect how the Fund performs. The following bar chart shows the Fund's performance for the indicated share class for each full calendar year of operations or for the last 10 calendar years, whichever is shorter. The bar chart and Average Annual Total Returns table demonstrate the risk of investing in the Fund by showing how returns can change from year to year and by showing how the Fund's average annual total returns for the share class compare with a broad-based securities market index and a group of similar mutual funds.

Past performance (before and after taxes) does not mean that the Fund will achieve similar results in the future. Updated Fund performance information is available online at www.jennisondyden.com.

Annual Total Returns (Class B Shares) 1

   

 

Best Quarter:
2nd Quarter 2003
8.84%

Worst Quarter:
4th Quarter 2008
-17.11%

1 These annual total returns do not include deductions for sales charges. If the sales charges were included, the annual total returns would be lower than those shown. The total return of Class B shares from 1-1-09 through 9-30-09 was 38.27%.

 

Average Annual Total Returns % (as of 12-31-08)
Return Before Taxes One Year Five Years Ten Years Since Inception
Class A shares -25.90 -1.07 1.19 N/A
Class C shares -23.37 -0.61 1.17 N/A
Class L shares -25.90 N/A N/A -15.78
Class M shares -27.13 N/A N/A -16.10
Class X shares -22.59 N/A N/A -2.94
Class R shares -27.11 N/A N/A -16.09
Class Z shares -22.14 0.12 1.94 N/A

 

Class B Shares %

Return Before Taxes -26.21 -0.75 1.17 N/A
Return After Taxes on Distributions -28.52 -3.26 -1.79 N/A
Return After Taxes on Distribution and Sale of Fund Shares -16.77 -1.86 -0.64 N/A

 

Index % (reflects no deduction for fees, expenses or taxes)

Barclays Capital High Yield 1% Issuer Capped Index

-26.57 -1.04 2.25 N/A

Lipper Average

-25.86 -1.50 1.20 N/A

° After-tax returns are calculated using the highest historical individual federal marginal tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for the indicated share class. After-tax returns for other classes will vary due to differing sales charges and expenses.

MANAGEMENT OF THE FUND

Investment Manager Subadviser Portfolio Managers Title Service Date
Prudential Investments LLC Prudential Investment Management, Inc. Paul Appleby, CFA Managing Director 1999
    Stephen Haeckel Principal 1999
    Robert Spano, CFA, CPA Principal 2007
    Terence Wheat, CFA Principal 2005
    Michael J. Collins, CFA Principal 2001

BUYING AND SELLING FUND SHARES

Minimum Initial Investment Subsequent Investments
Fund shares (most cases) $2,500 $100
Automatic Investment Plan (AIP), retirement accounts and custodial accounts for minors $1,000 $1,200 annually (AIP accounts)

You can purchase or redeem shares through the Fund's transfer agent or through servicing agents, including brokers, dealers and other financial intermediaries appointed by the distributor to receive purchase and redemption orders. To buy shares through the transfer agent, a new investor must complete a new account application and return it with a check payable to the Fund and mail it to Prudential Mutual Fund Services LLC, PO Box 9658, Providence, RI 02940. Current shareholders may also purchase or redeem shares through the Fund's website or by calling (800) 225-1852. Redemption proceeds may be sent by mail, by Federal funds wire or deposited directly into your bank account if you have established the link.

TAX INFORMATION

Dividends, Capital Gains and Taxes. The Fund's distributions are taxable, and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401 (k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.

FINANCIAL INTERMEDIARY COMPENSATION

Potential Conflicts of Interest. If you purchase Fund shares through a financial services firm, the Fund, the Manager, or their related companies may pay the financial services firm for the sale of Fund shares and/or for services to shareholders. These payments may create a conflict of interest by influencing the financial services firm or the firm's representatives to recommend the Fund over another investment. Ask your financial services firm or representative for more information or visit your firm's website.

By Mail:

Prudential Mutual Fund Services LLC, PO Box 9658, Providence, RI 02940

By Telephone:

800-225-1852 or 973-367-3529 (outside the US)

On the Internet:

www.jennisondryden.com

MF110A

Summary Prospectus | Prospectus | Annual Report | Semi Annual Report | Statement of Additional Information