Create a new file. Any size (Mine is 100x100). Decide what color you want your outline to be and flood fill the file that color. Mine is black, if you can't tell. ^^
On the side bar, go to the text tool and press on it. The text window will pop up.
Pick a color, font, and font size for your word (If you're looking for a good small font, try out the one I'm using in this picture - it's my favorite). Make sure stroke is off. When using small fonts, keep antialias off as well - it's cleaner looking when off. Make sure the text fits in your box and press OK.
Now it looks like this. DO NOT UNSELECT IT. Keep it as it is.
Move up to the top bar (where File, Edit, View, etc. is) and go to Selections. Under that, move to modify and then to expand, as shown in this picture.
A window pops up. This part is up to you. The bigger the number, the thicker the outline. A normal outline is 1 pixel. When you choose, press OK.
It now looks like this. KEEP IT SELECTED, once again.
Go back up top and go under EDIT now. Click on copy.
Open the file you want to put the text in if you haven't already (I randomly picked a Jack picture, because I am retarded. XD). Under Edit once again, go to paste. Paste it as either a new layer or new selection. I'm doing new selection.
This is the finished product. A neatly outlined font to use in whatever you're out to use it for. ^^