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If you get into smithing, then the base damage of the dagger might become small next to how much you can improve it. You get double the improvement for materials you have the perk for. So if you only spend one perk point on smithing, you'll get double the improvement on steel, which might be enough to outclass higher tier daggers if you don't have their perk.
My personal favorite is the Nord Hero Dagger. That's part of the Fishing creation. It weighs as little as an Iron Dagger, has the base damage of an Elven or Nordic dagger, and benefits from the steel smithing perk. It requires you to do the Companions questline though. A close second favoring the same balance is the Skyforge Steel Dagger, which only requires you to do a couple Companions quests.
Mehrunes dagger is good of course, but the effect is unreliable.
depends on what you want to do.
If you are wanting to collect Souls in Black Soul Gems, then something like a Dragonbone Dagger with a Soul Trap Enchantment would be best.
If not then Mehrune's Razor which has a chance of killing anything your backstab damage doesn't kill due to it's enchantment.
Anyway, while I run with the Razor and the Blade of Woe if by some miracle I'm spotted and get into a tough fight I can pull out my second Blade of Woe and get double health absorb.
I remember being so drunk with power when I first discovered all the modifiers you can get with sneak attacks and daggers. The DB gloves that double sneak attack damage with 1H plus the skill perk gives you x30 backstab damage. Everyone talks about how stealth archer is OP, but stealth in general is OP when the game gives you bonuses like this coupled with brain dead AI.
If you're dual wielding it's a possible x60
The Shadow Warrior perk at 100 sneak is stupidly OP with daggers, you can engage in direct combat with entire groups of enemies and pull of infinite sneak attacks.
Sneak or not... 1 strike with the left and hammer them with the right hand dagger. If they get up.... left again to put them on the ground and pelt them with the right hand. Rinse and repeat until dead.