If the dip stick you are using indicated correctly in the past, then there is nothing wrong with it. However, if you changed dip sticks, then I would be suspicious of the replacement one.
There is no harm putting 4 or more quarts of oil into the distributor hole. The oil will overflow the dams in the valve chamber. Some of the oil will go down into the oil return pipe and some of it spill out into the timing gear case. All of the oil will eventually fill the connecting rod troughs and the crankcase, but it will take more time to do so.