Two goals from Fernando Torres and one from Raul Meireles gave Liverpool their first win since they beat Bolton Wanderers on New Year's Day and brought a huge smile to the craggy face of the Scotsman who replaced Roy Hodgson as manager on January 8.
"It was nothing short of what we deserved. We will always be competitive. We might not be smashing people across the nose with their elbows, but we'll always be competitive," Dalglish told Sky Sports after Liverpool's second away win of the season in the Premier League.
"The way we worked was great credit to them, we are one unit, there are no divisions in this football club and if we stick together we've got a chance."
Dalglish hailed Spain striker Torres's "fantastic" performance, adding: "Apart from his two goals, he worked his socks off and he was threatening most of the time, that performance will do for us."
There has been little evidence of that old authority this season, but Saturday's victory hints at better times to come under Dalglish, who guided Liverpool to their last championship in 1990 before quitting the following year.
"If you are going to come to Molineux and you don't put in a performance, there is no way you are going to get a result," Dalglish said.
"The way the lads competed is a reflection of what they have been like since we've come in, and maybe today we never looked like losing."
Liverpool's victory avenged Wolves' shock 1-0 win at Anfield last month, a result that hastened the departure of Hodgson and the return of Dalglish.
