Looking at the front sight sounds ridiculously easy, doesn't it? However, after serving many years as a police firearms instructor, I can assure you that some shooters never learn to look at the front sight. They think they are looking at the sight, but they are not.
When you truly learn to concentrate on the front sight, it will be unnecessary to look at your target. You will know where the sight was at the moment you broke the shot. Consequently, you will also know where the bullet hit the target.
Dry firing is a good thing, and I am all for it. But be advised that you will behave differently with a loaded gun than you do with one that you know is unloaded. Nobody jerks the trigger, flinches, or otherwise makes a bad shot with an empty gun.
You will do these things with a loaded gun, even with a mild .22 LR.
So when you look at a target you've just shot and the hits aren't where you hoped they would be, accept the fact that you haven't learned to concentrate on the front sight.
As JP mentioned, the other issue is trigger control. It is hard for a new shooter to accept the fact that he flinches or jerks the trigger. He isn't afraid of the recoil, so why would he flinch? Fact is that even expert shots have to work and keep working on trigger control, especially with a handgun. There are several other "fundaments" that are important, grip, stance, breath control, sight alignment, sight picture, etc. But the big lessons to learn are sight alignment (watch the front sight) and trigger control.