Retro dots are great for putting behind an object or making a background for large text.
1. The first step is to get an image you want to be in front of the dots. I used a boat, but that part is totally up to you (you could even use a shape you have drawn). Just make sure your image isn't too big or too small.
2. You will need to select your image. So first Ctrl click the layer your image is on and then click on the Channels tab that can be found above all the layers.
3. Now create a new alpha channel by clicking the Create new channel button which is where the New layer button used to be.
4. Now, in the new channel, fill your image with white using the paint bucket.
5. Now you need to deselect the image Ctrl+D or Select > Deselect. Now go to Filter > Blur > Gaussian Blur. Play around with blur settings until your happy (the more blurry it is, the farther out the dots will be).
6. Now go Filter > Pixelate > Color Halftone. Now set the max radius at the top of the menu. The bigger the max radius you type, the bigger the dots will be. I prefer the number 11.
This is what your image should look like now.
7. Now Ctrl click the whole alpha channel and then go back to the Layers tab.
8. Now make a new layer and put it under (make sure it is under) your original image layer. Now you can use the paint bucket to make the dots any color you want. To see your final image just press Ctrl+D, and you're done! Pretty cool.
Click to enlarge