I have found (In photoshop, don't know if other appz have this setting) that if you want a non compressed Image with proper Alpha transperancy.
You can save the dds using
8.8.8.8 ARGB 32bpp unsigned rater than DXT3 or DXT5 both of which are 8bpp (files are larger but for no banding well worth it).
Here's an example of the difference: DXT3/5 on the left 8.8.8.8 on the right.
The banding in the DTX3 Alpa channel is nowhere as good as the Alpha channel from using 8.8.8.8 option when saving .dds file
Now the 8.8.8.8 option is selectable in Photoshop with the nvidia plug-in, so I'm not sure if other progs have this option as well.
But the good news is Silent Hunter 5 has no problem loading in this format
.