Degreeing a Cam vs. Lining Up the Dots

This is my first time degreeing a cam. I'm putting a solid lifter cam in a 273. I've verified TDC with a dial indicator at least ten times to make sure I'm not going crazy. Then I put on the sprockets and chain, and lined up the dots straight, cam dot at the bottom, crank dot at the top. I started with the #1 exhaust, which is supposed to open at 62.5 BBDC, but it's opening at 50 BBDC.
Well, OK, I shift the cam sprocket one tooth, and now I'm getting my 62.5. But when I sit back and look at the dots on the sprocket, they don't line up, looks like I'm a tooth off. Same thing happens when I measure the intake.
Cam manufacturer is closed until Jan 6. I'm assuming I'm supposed to take these measurements at .050" lift.
Do I discount/ignore the position of the dots and rely on my numbers, or does it sound like I'm doing something wrong? Does this ever happen to you seasoned guys?