Dot diffusion is an efficient approach which utilizes concepts of block-wise and parallel-oriented processing to generate halftones. However, the block-wise nature of processing reduces image quality much more significantly as compared to error diffusion. In this work, four types of filters with various sizes are employed in co-optimization procedures with class matrices of size 8 times 8 and 16 times 16 to improve the image quality. The optimal diffused weighting and area are determined through simulations. Many well-known halftoning methods, some of which includes direct binary search (DBS), error diffusion, ordered dithering, and prior dot diffusion methods, are also included for comparisons. Experimental results show that the proposed dot diffusion achieved quality close to some forms of error diffusion, and additionally, superior to the well-known Jarvis and Stucki error diffusion and Mese's dot diffusion. Moreover, the inherent parallel processing advantage of dot diffusion is preserved, allowing us to reap higher executing efficiency than both DBS and error diffusion.