Interesting Dispel Magic Questions

[schm0]

Dissipate just means disappear in this context. It is no longer visible. That's why the spell allows the object, which is the magical effect created by the spell, to reappear. It persists until the spell ends.

There is also no effect on the caster, RAW. The magical effect created by the spell takes the form of a weapon which is held in the hand. It does not alter or affect the creature in any way. If it did, the spell would cast it's effect on the creature, such as with mage armor or aura of vitality or any other number of similar effects.