Yahoo Mail (free or paid) allows for the creation of Distribution Lists (DL). Yahoo calls it: CATEGORIES.
To create categories or DL, Do the following:
1. Sign on tou your yahoo account
2. Click on the Contacts tab
3. Click on “ADD CATEGORY”
4. Enter the name for your category
5. Start to populate the category by Clicking on View all contacts list and selecting the names you want to add for your category; After you select the names, click “ADD TO CATEGORY” on the right pane of the screen and choose the category you just created
6. Your are done!
NOTE: If you want to send emails to the people in the category you created, enter the name of the category in the “TO”, “CC”” or “BCC” fields, and the email will be sent to all users within that category.
You can also check this Yahoo Help article that has more help on the subject