That's a very one-dimensional view of investing though. The Bogle (the founder of Vanguard) school of investing says that investing in the hopes the price will

That's a very one-dimensional view of investing though. The Bogle (the founder of Vanguard) school of investing says that investing in the hopes the price will go up or down is nothing but speculation on the same level as investing in commodities (a barrel of oil does not do anything, it just sits there and is worth what the market says it is worth). This traditional view holds that companies are fundamentally different than barrels of oil, in that they can produce wealth and provide reasonable returns to their share-holders year after year and that you can take your 7% appreciation at the rate the economy grows (or at least used to). Timing the market is certainly a valid (if highly risky) strategy, but it's only one view of investing. It's only in this strategy which dividends don't make sense.