BorgWarner (BWA) — a major player in auto parts — has been a favorite of mine in the last few months, explains Chuck Carlson, a specialist in dividend reinvestment plans and the editor of DRIP Investor.

The firm is a major player in turbochargers and has been broadening its product mix in vehicle electrification to include e-motors, power electronics chargers, and battery systems. The company also has a strong position in transmission components.

BorgWarner expects to see big growth in the electric vehicle space over the next few years. It estimates that its “eProducts” will generate around $10 billion in sales by 2027.

I like the direction BorgWarner is heading. And I like the fact that the firm provides an under-the-radar way to play the EV revolution. As more people understand the company’s strengths in this space, demand for these shares should rise.

The stock represents an excellent way to build industrial exposure in a DRIP portfolio. Please note BorgWarner offers a direct-purchase plan. Minimum initial investment is $500. The plan administrator is Computershare. For enrollment information call (800) 851-4229.

To focus on its fastest-growing businesses, BorgWarner spun off Phinia (PHIN), which housed its fuel-systems and aftermarket businesses. BorgWarner shareholders received one share of Phinia for every five shares of BorgWarner held.

BorgWarner stock has behaved reasonably well since the spinoff. For investors who already own BorgWarner and now own Phinia shares, my inclination would be to sell the Phinia shares and use the proceeds to buy more BorgWarner stock.

Subscribe to DRIP Investor here…