Present disclosure describes an improved mechanism for addressing component mismatch in a DAC. The mechanism is based on carefully selecting the first DAC unit of an ordered sequence of DAC units that are switched on to convert a particular digital value to an analog value. The mechanism benefits from recognition that selecting the first DAC based on a value of a band-limited dither signal, where the band of the dither signal is selected to be sufficiently removed from the band of the signal of interest, allows shifting effects of DAC units mismatch away from the signal of interest in a manner that is easy to implement and control. Because dither signal is not added to the signal of interest, but is only used to control which DAC units are turned on, drawbacks of a traditional dithering method can be avoided while benefiting from the use of dither.