Dalglish was criticised for many of his signings - Stewart Downing, Jordan Henderson and Andy Carroll in particular - but having stabilised the club in the wake of Roy Hodgson's departure he believes he leaves his successor a great foundation on which to build.
"You cannot underestimate the pressure that is on a boy who comes to play for Liverpool," he said.
"But in the first year, what they have done has been a credit.
"There is now a great foundation to build on and to move forward with.
"It's fantastic for the club and those players - and I hope they go on and represent everybody well."