Yes, dots is a Scrabble word!

Verb

1. Scatter or intersperse like dots or studs

2. Distribute loosely

3. Make a dot or dots

4. Mark with a dot

Noun

1. A very small circular shape

2. The United States federal department that institutes and coordinates national transportation programs; created in 1966

3. The shorter of the two telegraphic signals used in Morse code

4. Street name for lysergic acid diethylamide