Dyer, who joined the Hornets in the summer after helping Leicester City win the title in May, thinks that he can emulate last season's promotion with his new club.
Despite the managerial upheaval, Dyer thinks that the ability and pace within the squad will see them go on to achieve a lofty finish.
"We've got so much ability within the squad, particularly with the pace we've got, so if we get things right we'll be a real threat in this division," he told the club website.
"We've got the likes of Ikechi [Anya] and [Matej] Vydra, [Juan Carlos] Paredes is lightning quick and there's also myself, so we've got pace in abundance.
"It's been a busy time for the club, these last few months, but we're still joint top of the Championship and that's a real positive."
Watford lie third in the table, behind Norwich City and Nottingham Forest on goal difference, after 11 games. They next travel to Sheffield Wednesday on Saturday.