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Not a dumb question at all - that's actually a very good one. Basically, dividends can be detrimental to stockholders because they are doubled taxed. Keep in mind that stockholders are partial owners of the company, and dividends are one way the business can provide them with a return on their investment.
However, the company has to pay taxes on what it earns, and when it pays a dividend the stockholder has to turn around and pay taxes again on those dividends. This is one reason well respected firms like Berkshire Hathaway don't issue a dividend.
The other way that the company can give investors ROI is through stock buybacks. Basically, as a shareholder you have a claim on future earnings of the company. When the company buys back its own shares, there are less to go around in the open market. Therefore, your shares are worth more since you now own a bigger "piece of the pie".
Hope that helps!
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