It is narrated from Sayyiduna Ibn Abbas (may Allah be pleased with them both) that a man passed by the Prophet (peace and blessings be upon him) who had dyed (his hair) with henna, and he (peace and blessings be upon him) said: "How fine this is!" Then another man passed by who had dyed with henna and katam (a plant mixed with henna to change the colour), and he (peace and blessings be upon him) said: "How fine this is!" Then another man passed by who had dyed with yellow, and he (peace and blessings be upon him) said: "This is finer than all of these." And Tawus (may Allah have mercy on him) used to dye with yellow.
Hadith Referenceالمعجم الكبير للطبراني / باب العين / 10876