Mouseover Dexterity in your character Log...it tells you that it increases Parry/Block Chance...
If you really put points into MND as a Paladin you're a lost cause anyway. 1MND equals 1 Healing Magic Potency which equals a mere 2-4HP extra cured...I don't see how 15HP more outweigh 2-4HP extra on cures...but hey you seem to know what you're doing, since DEX doesn't affect Parry and all...
