Outline Text in Photoshop (Selection + Expand + Fill)
Outlining text is great for emphasis and readability. This method uses a selection from your text, expands it to set the outline width, and fills the outline on a separate layer for easy control. Adjust the expand value to change stroke thickness.

Step-by-step instructions
Type and position your text
Select the Type Tool (T) and enter your text.
Move or transform the text into position as needed.
Create a new layer beneath the text
Click the New Layer button in the Layers panel.
Drag the new layer below the text layer.
Load the text as a selection
Right-click the text layer’s thumbnail and choose Select Pixels.
Expand the selection to set outline thickness
Go to Select → Modify → Expand.
Set Expand By to 3 px (or your preferred width) and click OK.
Fill the outline on the lower layer
Select the lower layer (beneath the text).
Click the Foreground Color swatch and choose your outline color; click OK.
Choose the Paint Bucket Tool (G) and click inside the selection.
Press Ctrl+D (Cmd+D) to deselect.