Using older versions of Outlook for Mac in business environments
I think the port setting are incorrect. Usually Incoming Port is 995. I would switch these instructions.
Another site suggested these setting that are a bit different. Why does this have to be so confusing? :-(
Incoming mail server settings
POP server: pop3.mail.yahoo.com
Use SSL: Set this enabled.
Port: 995
Outgoing mail server (SMTP) settings
SMTP server: smtp.mail.yahoo.com
Use SSL: Enable SSL.
Port: Use 465 as the port.
Use authentication: Set this enabled.