The Styles palette contains some helpful presets. Some of which include dotted lines to use around type
Styles can be applied to any layer, and look particular cool when used around text.
Open the Styles palette from the Window menu, and click the small arrow in the top right.
Select the Dotted Strokes, and hit OK to load them in the palette.
Styles are preset Layer Styles, and offer an easy way to experiment with different looks.