If you’re a practicing dentist in Canada, it’s easy to dismiss the headlines about Henry Schein or
Dentsply Sirona getting downgraded on Wall Street. After all, you’re not a portfolio manager—you’re
running a clinic, managing patients, and likely balancing corporate and personal finances. So, the real
question is: should you care about what’s happening with dental stocks? The answer: Yes—but not in the way you think.
The bigger picture behind the market moves
Dental stocks, like Dentsply Sirona or Henry Schein, are typically bellwethers for broader healthcare and consumer discretionary trends. When they get downgraded, it’s less about their business model failing and more about market sentiment: rising interest rates, shifting demand, margin pressure, or supply chain
vulnerabilities.
For dentists, this matters indirectly. These same trends—higher costs, tighter margins, economic slowdowns—can start showing up in your own practice. Whether it’s increased cost of supplies, slower payments from insurers, or patients deferring discretionary procedures, the ripple effects are real.
Do you need to invest in dental stocks?
Many dentists assume they should invest in what they know—so buying stock in dental supply companies seems logical. But investing in your profession is not the same as investing for your future.
Let’s be clear: there’s no inherent advantage in overweighting dental stocks in your portfolio just because you’re a dentist. In fact, doing so might concentrate your risk, and I personally don’t recommend investing in the same industry that your income relies on. You already have a high exposure to dentistry—your clinic income, your corporation, your goodwill valuation are all tied to the success of the dental industry.
Doubling down on that risk in your portfolio may reduce diversification and increase volatility.
Your investment portfolio should be built to support your lifestyle—not mirror your profession.
What smart moves should dentists consider now?
In times of economic uncertainty, here’s what I recommend for Canadian dentists—especially those operating through a professional corporation:
- Rebalance with purpose: Ensure your portfolio is diversified across asset classes, sectors, and geographies. Don’t chase hot sectors or over-invest in “familiar” names like dental suppliers.
- Use your corporation to hold passive investments in a tax-efficient way—ideally through a Corporate Investment Account (CIA) with a long-term, low-cost strategy.
- Review corporate cash flow: If you’re sitting on excess retained earnings, now is the time to deploy that cash wisely. Whether it’s topping up your TFSA or funding your RRSP/IPP, be strategic.
- Plan for higher rates and slower growth: The era of cheap money is likely behind us. Build buffers into your practice—both in cash reserves and your business plan. Consider locking in debt at fixed rates where appropriate, and don’t stretch financially for expansions unless you have a robust plan.
- Don’t panic—position: Markets are forward-looking. If headlines feel gloomy, it often means much of the negativity is already priced in. Use that to your advantage. Uncertainty creates opportunity for disciplined investors with a long-term view.
- Get advice from someone who understands dentistry: This is not the time to go it alone or rely on generic financial advice. Your needs as a dentist—especially around tax planning, investment structuring, and risk management—are unique. Work with someone who understands your world.
Final thoughts
Do dental stocks matter to you as a dentist? Yes—but not because you need to own them. They’re signals. They tell you how the market is feeling about the sector you’ve bet your career on. But when it comes to your investments, your focus should be on building a plan that’s diversified, tax-efficient, and aligned with your long-term goals—not trying to predict the next downgrade or upgrade on Bay Street. Dentistry is what you do. But your portfolio should be built for who you want to become.
About the author:
Gurtej Varn is a wealth advisor specializing in serving early to mid-career dentists. His firm, White Coat Financial Inc., offers a full suite of services – investments, insurance, mortgages, tax planning, and financial advice. He’s quickly becoming the go-to advisor for dentists across Canada.