[Olorin]

In most of the tales I've read, dwarves are known for endurance and strength. Axes and hammers are a great weapon for them because they have enough strength to weild them well. Trying to make a sword large enough to take advantage of a dwarf's strength would result in a sword much too long for his stature.

They often outfit themselves in heavy armor, making it more advantageous to wield heavy weapons. Parrying with them is more difficult than with a balanced weapon, but your foes also have increased difficulty in parrying your heavy blows. Against another heavily armored opponent, heavy weapons are the only ones that can pound through the armor. Against a lightly armored foe wielding a smaller weapon, you can afford to take their hits on your armor, but they can hardly afford to take a single blow from a dwarven axe or hammer.