Using a titled border

import java.awt.*;
import javax.swing.*;
import javax.swing.border.*;

public class TitledExample extends JPanel {

    public TitledExample( ) {
        super(true);

        this.setLayout(new GridLayout(1, 1, 5, 5));

        JLabel label = new JLabel("Titled Border");
        label.setHorizontalAlignment(JLabel.CENTER);

        TitledBorder titled = new TitledBorder("Title");
        label.setBorder(titled);

        add(label);
    }

    public static void main(String s[]) {
         JFrame frame = new JFrame("Borders");
         frame.setDefaultCloseOperation(JFrame.EXIT_ON_CLOSE);
         frame.setSize(200, 100);
         frame.setContentPane(new TitledExample( ));
         frame.setVisible(true);
    }
}