One excellent, if underappreciated, way to generate income off of your portfolio is by investing in preferred stocks. This is something of a mix between debt and equity that often has a higher yield than either. Admittedly though, not all companies issue preferred stocks as most issues come from financials, utilities, and other companies in fairly low-growth industries. Nevertheless, given the relatively high yields and safe dividends, investors can usually generate a good return. One of the best ways to invest in preferred stocks is through closed-end funds focusing on the sector. One good choice