I do not put sweaters (or anything else besides underwear and workout clothes) in the dryer because the heat makes clothes fade and shrink. Depending on the sweater type, I lay it flat on a shelf we have in our utility room or I hang it in the utility room. I've never had a problem with a sweater stretching out to a point where it becomes a "dress."

Also, I hang a few of my "work sweaters" in my closet mostly so that I can easily find them should I want to wear them on a particular day.