Dummett has been a first-team regular since last season, whilst Armstrong has emerged as a potential star this time around and Shearer is pleased to see the youngsters coming through.
“It’s nice to see," he said to the Chronicle.
“It’s not exactly Sir John’s dream of many years ago when he wanted to see 11 Geordies in there.
“At least we’ve got a couple in and amongst the first-team picture so I think that’s always healthy.”
Dummett divides opinion at St. James' Park, but his commitment to the side cannot be denied.
Armstrong, meanwhile, is generating a lot of excitement about his future after making his full debut for the side last month.
The 17-year-old shone against Crystal Palace on his first start in the League Cup and there is genuine optimism that he can be the finest youth-product to come through at the Tyneside in some time.
Shearer should also be buoyed by the fact that Rolando Aarons has come into the team.
Although the winger is not strictly a Newcastle youth-product, having spent most of his teenage years at Bristol City before being plucked by the Magpies, he is still a youngster having an impact in the first-team.
The form of their academy prospects may be the only thing that has been a positive for the side to take so far this season, though.
The side have been in dire form over the opening period of the campaign and they are still looking for their first win.
It has left them under pressure to start collecting the three points after the international break, but Alan Pardew's side should be boosted by the return of Papiss Cisse.
The Senegalese striker is their major goal threat and his return from injury could be the turning point in the season, Shearer believes.
"It’s good to see him back amongst the goals," he said. "He had a poor season last year.
“We know he can score them. At the minute he looks like the only one who can score us goals.”