With the Australian share market home to a large number of quality growth shares, it can be hard to decide which ones to buy.

To narrow things down for you, I have picked out three top ASX growth shares which I think would be great buy and hold options. Here’s why I like them:

Kogan.com Ltd (ASX: KGN)

The first ASX growth share to consider buying and holding is this ecommerce company. Kogan’s shares have been on fire this year thanks to its explosive earnings and sales growth over the last few months. And while its shares are certainly not cheap, I believe they justify this premium because of its increasingly positive outlook thanks to the structural change that is happening in the retail industry. Another positive is that Kogan announced a $115 million capital raising earlier this month. It intends to use these funds to acquire businesses that add value and drive further growth.

ResMed Inc. (ASX: RMD)

Another growth share to consider buying is ResMed. It is a sleep treatment-focused medical device company which has delivered consistently strong earnings growth over the last decade. The good news is that I’m confident this positive form can continue over the next decade thanks to its high quality masks and software solutions and its growing market opportunity. Management has previously estimated that only ~20% of sleep apnoea sufferers have been diagnosed.

SEEK Limited (ASX: SEK)

A final growth share to look at buying and holding is SEEK. I think the job listings giant has the potential to grow materially in the future. This is largely due to its growing Zhaopin business in China. Given its massive opportunity in the lucrative market, I expect the Zhaopin business to be the key driver of growth over the next decade. Another positive is that earlier today the company released a trading update which showed that trading conditions are improving. This could make it an opportune time to invest.

More reading

• ASX 200 flat: Altium update disappoints, Metcash posts full year loss
• SEEK share price edges lower after trading update and impairment charge
• Why Kogan, Sezzle, & Splitit shares just hit record highs
• Which shares to buy if the ASX tumbles
• Brokers just upgraded these ASX 200 stocks to “buy” today

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended ResMed Inc. and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The EHR Resources Ltd (ASX: EHX) share price closed 20% higher today at 12 cents on the back of a strongly supported capital raising.

EHR is a mineral resources exploration company with an increasing focus on diamond exploration and project development.

Just this month, the company announced an earn-in agreement over a diamond project in Nunavat, Canada, as well as an exploration alliance agreement with a privately-owned company focused on diamond exploration in Botswana. 

EHR Resources also owns 625 mineral claims located in northern Quebec through its wholly-owned subsidiary Nanuk Diamonds, and an 18% interest in the La Victoria Gold-Silver Project in Peru.

Details of the capital raising

This morning, EHR announced it has received commitments for a $10 million institutional placement. New shares will be issued at 9.6 cents per share, which represents a 4% discount to EHR’s last closing price of 10 cents.

On top of the institutional placement, EHR will also conduct a share purchase plan (SPP) to raise up to an additional $2 million. New shares under the SPP will be issued at the same price as the placement.

The funds raised will be used to meet expenditures on existing projects, for potential incremental transactions in line with the company’s strategy, and for general working capital.

Commenting on the capital raising, managing director Peter Ravenscroft said:

“EHR has made very good progress since adding a focus on diamonds to its mineral resource project strategy, and the capital raising positions the Company to meaningfully progress the projects we have acquired.”

“Importantly, a raising of this size allows us to fully focus on adding value to our existing investments, while also strengthening the Company’s position with regards to other potential project acquisitions,” Mr Ravenscroft added.

Recent developments

At the beginning of the month on 2 June, EHR announced it had secured an option agreement with North Arrow Minerals to earn a 40% interest in the Nuajaat diamond project in Canada.

In return for the interest, EHR will fund a C$5.6 million preliminary bulk sample of 1,500 to 2,000 tonnes to be extracted in 2021. The project represents the largest underdeveloped diamond property in Canada not under the control of a major mining company.

EHR Resources followed up this announcement with another diamond-related ASX release on 9 June. It revealed it had entered into a diamond exploration agreement with Diamond Exploration Strategies, a privately-owned company with diamond licenses in Botswana.

Under the terms of the alliance, EHR will provide funding of US$1.5 million over three years to finance exploration activities. In return, EHR will earn 50% ownership of any discoveries made.

The alliance is initially over five areas that have existing prospecting licenses, but extends to cover other prospective areas of Botswana that may be identified.

The EHR Resources share price closed at 12 cents today, taking the company’s current market capitalisation to around $17 million. If you’d rather invest in much larger and more liquid companies, check out the top ASX growth shares in the free report below.

More reading

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• 3 quality ASX growth shares to buy and hold
• 3 dividend shares I’d buy to boost my income
• Apparently free brokerage is to blame…
• Top brokers are urging you to buy these 3 ASX stocks today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a number of dividend shares on the ASX that I’d buy to boost my income.

It’s getting harder to find good sources of income these days. Interest rates from bank accounts are now incredibly low after the RBA cut interest rates to just 0.25%.

Business earnings are also uncertain at the moment due to COVID-19 impacts. I think there’s a certain number of dividend shares that would be solid picks to boost my income, but others may not be as good as some investors expect.

Here are three dividend shares I’d go for:

Dividend share 1: Naos Emerging Opportunities Company Ltd (ASX: NCC)

The listed investment company (LIC) structure is great for investors who want income. It enables the LIC to generate investment profits from capital gains and investment income, the LIC can then pay out a smoothed dividend to shareholders.

But I only think certain LICs are worth investing in. Plenty of LICs just offer index-like returns with higher fees.

Naos Emerging Opportunities is a LIC that invests in ASX shares with market caps under $250 million. It is a good dividend share because it has maintained or grown its dividend every year since FY13. It currently has a grossed-up dividend yield of 12%.

If the LIC can continue to generate solid returns then the dividend can at least be maintained. It holds a portfolio of high-conviction shares, it only has around 10 positions. It aims to be a long-term investor with each investment choice.

Dividend share 2: Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is probably my favourite dividend share on the ASX. It has increased its dividend every year since 2000. The first thing I look for with dividends is reliability. I don’t think there’s much point having a big dividend yield one year and then suffering a large cut one year later. Soul Patts has paid a dividend every year since its inception in 1903.

The investment conglomerate has a diversified portfolio of shares which sends a flow of quality dividends to Soul Patts each year. Some holdings include TPG Telecom Ltd (ASX: TPM), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Brickworks Limited (ASX: BKW).

The business funds its dividend from the investment income it receives, less operating expenses. In FY19 it retained around 20% of its regular net operating cash flow to re-invest into more opportunities.

The dividend share has already guided that the final FY20 dividend will be an increase on FY19’s final dividend.

It’s steadily making new investments to diversify the portfolio further. New investments include agriculture, retirement living and regional data centres.

Dividend share 3: WAM Leaders Ltd (ASX: WLE)

WAM Leaders is another LIC. This one is managed by the high-performing team at Wilson Asset Management (WAM). It looks to make good returns from the larger businesses on the ASX.

The dividend share has grown its dividend each year since FY17. It currently has an annualised grossed-up dividend yield of 8.7%.

Since inception in May 2016, its investment performance (before fees, expenses and taxes) has outperformed the S&P/ASX 200 Accumulation Index by 3.8% per annum. Over the past year its gross portfolio performance has been 11.4% better than the benchmark. I think that’s an impressive performance from the dividend share.

Some of its top 20 holdings are similar to the ASX 20. But some holdings at the end of May 2020 were different, like Downer EDI Limited (ASX: DOW), Fortescue Metals Group Limited (ASX: FMG), OZ Minerals Limited (ASX: OZL), QBE Insurance Group Ltd (ASX: QBE), Ramsay Health Care Limited (ASX: RHC) and Santos Ltd (ASX: STO).

As a bonus, WAM Leaders is trading at a 7% discount to the 31 May 2020 net tangible assets (NTA).

Foolish takeaway

Each of these dividend shares would be really good options to boost your income. Naos clearly has the biggest dividend yield, but that doesn’t leave much room for share price growth over time. Soul Patts is my preferred choice because of its low operational costs and ultra-long-term record of dividends and reliability.

More reading

• 3 long-term ASX 200 shares I’d buy right now
• What are the best ASX shares for dividends?
• Forget bank interest, try these ASX 200 dividend shares!
• 2 ASX blue chip shares I think every portfolio should hold
• 3 ASX dividend shares to buy and replace a term deposit

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Ramsay Health Care Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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