I was checking my trans fluid level today (looks ok) but the dipstick is coming out covered with bubbles. Is this normal or do I need to do something about it.

 

If the level is okay and you're sure of that, don't worry. Otherwise, bubbles usually indicate overfilling of fluids, which causes foaming.

Make sure the conditions are ideal for checking, since ATF levels are a bit tricky. Be sure the car is driven to normal operating temps, but don't check it if you've been on like a 45 minute trip, or a long freeway run. Get the car warm, park on level ground, shift the tranny through all the gears and bring it back to P, and then check levels with the engine running.