Yes
There really is a choice and a distinction here.
You can use the past tense of just about any verb in an adjectival form. Would anyone object to writing, "The hated splitting tens"? I don't think so.
So, structurally, what's the difference between that and "The dreaded splitting tens"? There really isn't any.
But, it so happens that "dread" can be used, as is, as an adjective, and so, "The dread splitting tens" is also correct in this case.
Don