Dexterity affects the following:
- Very slightly increases accuracy in combat.
- Increases the effect of Dodging skill on evasion.
- Increases the chances to stab monsters.
- Slightly increases stealth (3 per point - for comparison, boots of stealth give 50).
- Slightly increases your SH bonus with bucklers, shields or large shields.
- Increases the chance of doing auxiliary attacks.
- Increases the chance of doing retaliatory headbutts when you are a minotaur.
If you are casting spells, intelligence is nearly always better than dexterity. Strength gives greater damage benefits than dexterity but does not give evasion benefits except inasmuch as it reduces armour penalties.
If your dexterity is ever reduced to 0 or lower, you will eventually suffer stat zero.
Prior to 0.18, each weapon type had a strength weight that determined how much dexterity contributed to damage and accuracy. Now dexterity increases accuracy equally for all weapons, and does not affect damage.