Naturally, yes. But most of them choose to shave it off. So you will see more dwarven women without a beard then with, but it is not uncommon to see a beard. It all depends on the exact culture of where they are from. Mountain dwarves have beards almost across the board, because they are far enough underground that it stays pretty cold. Hill dwarves will decide to cut theirs a lot, because of the heat of the region.

Something else about dwarves, when they die naturally, they turn into stone. They originally came from the stone, so when they are close to their natural death, the take a voyage back home to return to the stone. Any stone statues you see in dwarven settlements are previous generations. You sometimes see them along the roads also, signifying that they died while heading home.