2 weeks ago I had my TT axles upgraded with 5,200 lb Dexters and I have stacks of reference material on my desk and computer as I recalibrate my knowledge base for the new components.
The wheel section of the Dexter service manual calls for 90-120 FT-LBS for wheels made by Dexter prior to 2004. They quit making their own wheels then, and now call for simply a MAXIMUM TORQUE by stud size. They list 120 as the MAX for 1/2' studs.
I agree with others in thinking 120 is just too much. My previous 3,500 lb Lippert axles called for 100 FT LBS on a 1/2" stud, and the coach sticker on my 4 year old trailer also called for 100 FT LBS.
I have had a lot of trouble with the lug nut threads distorting. In fact it is rare for my to re-use a lug nut because once used they can't be spun back on by hand. I carry a big bag of new lug nuts and have started experimenting with other suppliers.
For this reason, I'm staying in the 90 FT LB range. And yes, I use a torque wrench that was calibrated in December with no corrections needed.